Deloitte: Multinational Enterprises' Layout in China Undergoing Profound Transformation

How AI Localization 2.0 Supports Global Strategic Deployment

Faced with complex changes in the international economic and trade landscape, multinational companies are accelerating their global strategic adjustments.

At the 2nd Cross-Border Enterprise Forward-looking Summit held on March 18, Liu Minghua, CEO of Deloitte China, stated that amid rising international uncertainties, China’s institutional openness provides a stable operating environment for multinational companies. Meanwhile, an innovation ecosystem driven by high-end talent, complete industrial chains, rich application scenarios, and efficient institutional collaboration is accelerating formation, deeply integrating into global R&D networks. More and more multinational companies are no longer viewing China solely as a manufacturing base or sales market but are upgrading it to a R&D center and a key hub for industrial chain collaboration within their global strategies.

Based on long-term market observation and in-depth interviews, Li Jiaming, Partner in Charge of Foreign Business in China at Deloitte China, analyzed that although global economic growth momentum is insufficient and prospects remain uncertain, China’s role in the global strategy of multinational companies is becoming more prominent. Specifically, China’s role is accelerating its leap, with multinational companies practicing Localization 2.0 and upgrading the global role of Chinese teams.

Against the backdrop of deep restructuring of the global industrial chain, China is no longer just a global procurement and manufacturing center relied upon by multinational companies but is also rapidly emerging as a key source of global innovation. Observations indicate that the layout of multinational companies in China is undergoing profound transformation—from “localization for China” to “strategic empowerment for the world.” In fields such as energy transition, biotechnology, digital economy, and advanced manufacturing, China is nurturing a new wave of innovation.

Secondly, multinational companies are practicing Localization 2.0. In response to accelerated technological iteration in China and the deep restructuring of global industrial chains, these companies urgently need to go beyond traditional “localization” thinking and build new competitiveness that can both deeply serve the Chinese market and empower global deployment. Leading multinationals are beginning to leverage local innovation to feed back into global strategies, digitally reshape business models, and enhance decision-making responsiveness, achieving strategic leaps.

Additionally, as more multinational companies regard China as a strategic high ground for refining competitiveness, attracting and retaining high-quality R&D and management talent has become a critical factor influencing the success of their global strategies.

According to Deloitte’s observations, talent localization is accelerating. An increasing number of companies are focusing on cultivating local leadership, promoting their transition from “implementers” to “decision-makers,” and from “participants” to “leaders,” achieving a strategic leap from “outsiders” to “local co-innovators.” This not only enhances operational agility and market responsiveness in China but also fosters a new reverse empowerment model of “serving the world from China.”